India added 11.3 GW of solar modules, 2 GW of cell capacity in 1H 2024

09 Oct 2024 CW Team

In the first half of 2024, India added 11.3 gigawatts (GW) of solar modules and 2 GW of solar cell capacity, as reported in the Mercom India research report titled “State of Solar PV Manufacturing in India 1H 2024.” The report highlighted that these manufacturing capacity additions were driven by strong demand, with solar project pipelines projected to total 132.7 GW between 2024 and 2026. Additionally, the reimposition of the Approved List of Models and Manufacturers (ALMM) order in April 2024 contributed to this growth.

By June 2024, India's cumulative solar module manufacturing capacity reached 77.2 GW, while solar cell manufacturing capacity totaled 7.6 GW. Approximately 51 GW of module capacity across various technologies had received ALMM certification by the end of June 2024. The report indicated that the top 10 manufacturers accounted for nearly 58 percent of module production and 100 percent of cell production capacity.

Looking ahead, India's solar module manufacturing capacity is expected to reach 172 GW and cell capacity nearly 80 GW by 2026. Raj Prabhu, CEO of Mercom Capital Group, noted that despite significant capacity additions, the supply of domestically produced modules remains constrained because cell production has not increased accordingly. He expressed concern that many projects could experience delays due to domestic content supply shortages without a rapid increase in cell capacity. Furthermore, he stated that average module prices are likely to stay high until supply and demand stabilize. As trade restrictions tighten, manufacturers' reliance on exports for long-term growth is increasingly seen as risky. Gujarat emerged as the leading state for solar photovoltaic component manufacturing, housing about 45 percent of solar modules and 52 percent of solar cell capacity in the country by June 2024.

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